FIN 515 Read, Lead, Succeed/uophelpdotcom

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FIN 515 Read, Lead, Succeed/uophelpdotcom

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2
FIN 515 Course Project 1 and 2

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•  This Tutorial contains
• Week 3 Course Project (3 Sets)
• Week 6 Course Project (2 Sets)

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FIN 515 Entire Course

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• This tutorial doesnt contain Final Exam Guide
• FIN 515 Week 1 DQ 1 Accounting Versus Finance
• FIN 515 Week 1 DQ 2 Financial Analysis
• FIN 515 Week 1 Quiz
• FIN 515 Week 1 Quiz (New)
• FIN 515 Week 1 Problem Set
• FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
• FIN 515 Week 2 DQ 2 Assumptions of the TVM

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FIN 515 Final Exam (all 3 Sets)

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• FIN 515 Final Exam Set 1
• FIN 515 Final Exam Set 2
• FIN 515 Final Exam Set 3

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FIN 515 Final Exam Set 1

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•  1. (TCO A) In the United States, which of the
  following types of organization has the greatest
  revenue in total? (Points 5)
• a. Sole proprietorship
• b. C corporation
• c. S corporation
• d. Limited partnership
• 1.1) Which of the following is not a step in the
  WACC valuation method?
• A) Compute the value of the investment, including
  the tax benefit of leverage, by discounting the
  free cash flow of the investment using the WACC.

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FIN 515 Final Exam Set 2

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• Question 1.1. (TCO A) Double taxation is a
  drawback for which of the following types of
  business organization except?
• Question 2.2. (TCO A) Sole proprietorships have
  all of the following advantages except
• Question 3.3. (TCO B) Which of the following
  would cause the present value of an annuity to
  decrease?
• Question 4.4. (TCO B) In a TVM calculation, if
  incoming cash flows are positive, outgoing cash
  flows must be
• Question 5.5. (TCO G) If net income, total
  assets, and book value of equity stayed the same,
  what would be the effect on the DuPont Identity
  of an increase in sales?
• Question 6.6. (TCO D) A stock has just paid a
  dividend and will pay a dividend of 3.00 in a
  year. The dividend will stay constant for the
  rest of time. The return on equity for similar
  stocks is 14. What is P0?
• Question 7.7. (TCO D) A stock has just declared
  an annual dividend of 2.25 to be paid one year
  from today. The dividend is expected to grow at a
  7 annual rate. The return on equity for similar
  stocks is 12. What is P0?

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FIN 515 Final Exam Set 3

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•  1. (TCO A) In the United States, which of the
  following types of organization has the greatest
  revenue in total? (Points 5)
• Sole proprietorship
• C corporation
• S corporation
• Limited partnership
• Question 2.2. (TCO A) A sole proprietorship is
  owned by (Points 5)
• one person.
• one or two people, but if there are two
  owners, they must be married to each other.
• up to 100 owners.
• up to 64 owners.
• Question 3.3. (TCO B) Which of the following
  would cause the present value of an annuity to
  decrease? (Points 5)
• Reducing the number of payments.
• Increasing the number of payments.

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FIN 515 Week 1 DQ 1 Accounting Versus Finance

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•   Accounting Versus Finance (graded)
• Much of the analysis done by financial managers
  is based on numbers that are different from what
  would seem
• to the corresponding numbers presented in the
  financial statements. This difference is not due
  to any kind of cooking
• the books or other attempts to mislead anyone.
  One example is the use of market value rather
  than historical cost in the valuation of assets.
• What are some other examples of the differences
  between financial management and financial
  accounting?

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FIN 515 Week 1 Problem Set

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• www.uophelp.comChapter 1
• The Corporation
• 1-1. What is the most important difference
  between a corporation and all other
  organizational forms?
• 1-2. What does the phrase limited liability mean
  in a corporate context?
• 1-3. Which organizational forms give their owners
  limited liability?
• 1-4. What are the main advantages and
  disadvantages of organizing a firm as a
  corporation?
• 1-5. Explain the difference between an S
  corporation and a C corporation.
• 1-6.

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FIN 515 Week 1 Quiz (New)

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• Question 1.
• (TCO G) The lecture says that some ratios
  typically are better when they are higher and
  some of the ratios are better when they are
  lower. Pick a ratio for which a lower number
  typically would be preferred and describe a
  situation, in which a higher number for that
  ratio would be preferred, OR pick a ratio for
  which a higher number typically would be
  preferred and describe a situation in which a
  lower number for that ratio would be preferred.
• Question 2.
• (TCO G) As of December 31, 20XX, David Corp's
  accounts payable were 4,000,000. Its accounts
  receivable were 2,200,000, and its sales for
  20XX were 32,000,000. What was its days sales
  outstanding?
• Question 3.
• (TCO G) As of December 31, 2015, Michael Corp's
  current assets were 2,000,000. Its current
  liabilities were 2,000,000. Its sales for 2015
  were 50,000,000. As of December 31, 2016,
  Michael Corp's current assets were 3,000,000.
  Its current liabilities were 3,000,000. Its
  sales for 2016 were 65,000,000. Management has
  asked you to comment on these numbers.

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FIN 515 Week 1 Quiz

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• Question 1
• (TCO G) Which do you think provides a more valid
  measure of how a company is doing, comparison of
  current results with historical results or
  comparison of current results with the current
  results of another company?
• Question 2
• (TCO G) Barnes Corps total assets at the end of
  last year were 415,000,000 and its net income
  after taxes was 17,750,000. What was its return
  on total assets?
• Question 3
• (TCO G) Between December 31, 2016 and December
  31, 2017, ROE at Bobcat Industries decreased even
  though sales increased. Using the DuPont
  Identity, explain what else could have happened
  to cause this.

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FIN 515 Week 1-7 DQs

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•  FIN 515 Week 1 DQ 1 Accounting Versus Finance
• FIN 515 Week 1 DQ 2 Financial Analysis
• FIN 515 Week 2 DQ 1 TVM Pass-a-Problem
• FIN 515 Week 2 DQ 2 Assumptions of the TVM Model
• FIN 515 Week 3 DQ 1 Examples of Capital
  Expenditure From Your Industry
• FIN 515 Week 3 DQ 2 Capital Budgeting Terms and
  Considerations
• FIN 515 Week 4 DQ 1 Market Value of a Stock
  Versus DDM Value
• FIN 515 Week 4 DQ 2 Differences in YTM of Real
  Life Bonds

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FIN 515 Week 2 DQ 1 TVM Pass-a-Problem

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• TVM Pass-a-Problem (graded)
• This week, the lecture provided some examples
  of TVM problem scenarios. For your first post,
  provide a story problem that can be solved using
  one or more of the TVM calculations.
• Your second post can be a description of how
  the problem posed by another student can be
  solved. Your professor may provide an example.

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FIN 515 Week 2 DQ 2 Assumptions of the TVM
Model

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•  Assumptions of the TVM Model (graded)
• What are some of the assumptions behind the TVM
  calculations? How do these assumptions limit our
  application of these calculations?

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FIN 515 Week 2 Problem Set

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• 3.Calculate the future value of 2000 in
• a. five years at an interest rate of 5 per year
• b. ten years at an interest rate of 5 per year
  and
• c. five years at an interest rate of 10 per
  year.
• d. Why is the amount of interest earned in part
  (a) less than half the amount of interest earned
  in part (b)?
• 4.What is the present value of 10,000 received
• a. twelve years from today when the interest rate
  is 4 per year
• b. twenty years from today when the interest rate
  is 8 per year and
• c. six years from today when the interest rate is
  2 per year?

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FIN 515 Week 2 Quiz

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•  FIN 515 Week 2 Quiz
• Question 1
• (TCO B) You are a trust fund baby. Your trust
  fund is currently worth 1,234,000. The problem
  is the terms of the trust dont allow you to
  receive any of the money until you are 27. You
  are now 21. The fund is earning 7.7 per year.
  How much will the fund be worth when you are 27
  and too old to enjoy it?
• Ignore taxes. Show your work. If you use Excel,
  show the formula with the parameters, and the
  answer. If you use a formula, provide the
  standard formula, the formula with terms
  substituted, and the answer. If you use a
  calculator, show the inputs and the answer.
• Question 2
• (TCO B) You have a student loan of 75,000. The
  interest rate is 8.6 per year. You have been out
  of school for 6 months and are ready to start
  making payments. You want to use the maximum
  allowed of 10 years to pay off the loan by making
  equal monthly payments. How much are the monthly
  payments?
• Ignore taxes. Show your work. If you use Excel,
  show the formula with the parameters, and the
  answer. If you use a formula, provide the
  standard formula, the formula with terms
  substituted, and the answer. If you use a
  calculator, show the inputs and the answer.
• Question 3

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FIN 515 Week 3 Course Project 1 (3 Papers)

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•  This Tutorial contains 3 Different Course
  Projects
• First Course Project
• The purpose of this project is to help you
  develop skills not only in performing the
  calculations behind financial analysis but
  interpreting the numbers as well.
• You are to pick a company. You should pick one
  either from the industry in which you are
  currently working or an industry in which you are
  interested. You could also pick a division of a
  company. It is imperative to use that sufficient
  data about your company and that it is available.
  One way to do this is to pick a publicly held
  company. If you pick a privately held company or
  a division of a company, make sure that the data
  necessary to do a significant financial analysis
  is available.
• If you use data that is not publicly available,
  be sure to talk to your manager and to make
  absolutely sure that revealing that data is not a
  problem.
• You will also need to find a standard against
  which to compare your findings. This could be a
  different company in the same industry. This
  could also be the same company at a different
  time. Additionally, average or benchmark numbers
  are available for several industries. If you
  decide to use a different company in the same
  industry or the same company at a different time,
  make sure that there are enough differences
  between the two to make an analysis meaningful.
• After you have selected a company, put yourself
  in the place of an analyst who has been asked to
  perform an analysis of the company and provide s.

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FIN 515 Week 3 DQ 1 Examples of Capital
Expenditure From Your Industry

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•  FIN 515 Week 3 DQ 1 Examples of Capital
  Expenditure From Your Industry (graded)
• Describe a potential capital expenditure project
  from the industry in which you now work or an
  industry in which you are interested.
• What is the project? Describe and provide an
  approximate value of the initial cash flow.
  Describe and provide an approximate value
• of the annual cash flows. Provide an estimation
  of the life of the project, as well as the exit
  costs.

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FIN 515 Week 3 DQ 2 Capital Budgeting Terms
and Considerations

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• Capital Budgeting Terms and Considerations
• Our textbook and lecture discuss some
  considerations that should be taken into account
  when doing capital budgeting.
• How will these considerations affect the project
  you described in the other topic? Incremental
  earnings, interest expenses,
• taxes, opportunity costs, externalities, sunk
  costs, cannibalization or erosion, depreciation,
  and salvage value as well as others

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FIN 515 Week 3 Problem Set

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•  Week 3 Problem Set
• 1.
• Your brother wants to borrow 10,000 from you. He
  has offered to pay you back 12,000 in a year. If
  the cost of capital of this investment
  opportunity is 10, what is its NPV? Should you
  undertake the investment opportunity? Calculate
  the IRR and use it to determine the maximum
  deviation allowable in the cost of capital
  estimate to leave the decision unchanged.
• 8.
• You are considering an investment in a clothes
  distributor. The company needs 100,000 today and
  expects to repay you 120,000 in a year from now.
  What is the IRR of this investment opportunity?
  Given the riskiness of the investment
  opportunity, your cost of capital is 20. What
  does the IRR rule say about whether you should
  invest?
• 19.
• You are a real estate agent thinking of placing a
  sign advertising your services at a local bus
  stop. The sign will cost 5,000 and will be
  posted for one year. You expect that it will
  generate additional revenue of 500 per month.
  What is the payback period?
• 21.
• You are deciding between two mutually exclusive

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FIN 515 Week 3 Quiz

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•  Company A has a beta of 2.77. Company B has a
  beta of .73. Company C has a beta of .90. The
  risk free rate is 6 and the market risk premium
  is 4. What is the expected return of investing
  in Company B?
• stock portfolio consists of only two stocks. You
  have 15,000 in Company A and 25,000 in Company
  B. Company A has an actual return of -8 and
  Company B has a return of 12. What is the return
  on your portfolio?
• A company has a capital structure of 40 debt and
  60 equity. The YTM on the companys bonds is 9,
  and the companys effective tax rate is 40. The
  CFO has estimated the companys WACC to be 9.96.
  What is the companys cost of equity?

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FIN 515 Week 4 DQ 1 Market Value of a Stock
Versus DDM Value

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• FMarket Value of a Stock Versus DDM Value
  (graded)
• Select a stock in which you are interested.
  Calculate its per share value using the DDM or
  another method discussed in Chapter 9.
• Then find the current market value of a share of
  the stock. Compare that two. Can you explain the
  similarity or difference?

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FIN 515 Week 4 DQ 2 Differences in YTM of Real
Life Bonds

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•  Differences in YTM of Real Life Bonds (graded)
• Do some research, probably on the Web, and find
  some bonds with differing yields to maturity
  (YTM). How do you explain the difference?
• Both the lecture and the textbook discuss some
  factors that may lead to this difference.

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FIN 515 Week 4 Midterm

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• Question 1.
• Question
• (TCO G) The firm's asset turnover measures
• Question 2.
• Question
• (TCO G) If Moon Corporation has an increase in
  sales, which of the following would result in no
  change in its EBIT margin?
• Question 3.
• Question
• (TCO B) You plan on retiring in 20 years. You
  currently have 275,000 and think you will need
  1,000,000 to retire. Assuming you dont deposit
  any additional money into the account, what
  annual return will you need to earn to meet this
  goal?
• Question 4.
• Question
• (TCO B) You take out a 4 year car loan for
  18,000. The loan has a 4 annual interest rate.
  The payments are made monthly. What are the
  monthly payments? Show your work.
• Question 5.

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FIN 515 Week 4 Problem Set

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•  Bonds-1. Interest on a certain issue of bonds is
  paid annually with a coupon rate of 8. The bonds
  have a par value of 1,000. The yield to maturity
  is 9. What is the current market piece of these
  bonds? The bonds will mature in 5 years.
• Bonds-2. A certain bond has 12 years left to
  maturity. Interest is paid annually at a coupon
  rate of 10. The bonds are currently selling for
  850. What is their YTM?
• Bonds-3. A certain bond pays a semiannual coupon
  rate at a 10 annual rate. The bond has a par
  value of 1,000. There are eight years to
  maturity. The yield to maturity is 9. What is
  the current price of the bond?
• Bonds-4. A particular corporate bond has a par
  value of 1,000. Coupon payments are 40 and are
  paid twice a year. Seven years are left on the
  life of the bond.The YTM is 9. What is the price
  of the bond?

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FIN 515 Week 5 DQ 1 Calculating WACC for a
Real Firm

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•  Calculating WACC for a Real Firm (graded)
• The Weighted Average Cost of Capital (WACC) for a
  firm can be calculated or found through research.
  
• Select two firms in the same industry. The
  industry may be that in which you currently work
  or it may be an industry in which you are
  interested.
• Calculate or find the WACC for the two firms. How
  do the WACCs compare? Are the WACCs what you
  would expect?
• What causes the differences between the two
  firms' WACCs?

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FIN 515 Week 5 DQ 2 Finding Stock Values for
Real Stocks Using Beta and the SML

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•  Finding Stock Values for Real Stocks Using Beta
  and the SML (graded)
• Our second discussion topic concerns the
  calculation of stock values using the Capital
  Asset Pricing Model (CAPM).
• We will start with a discussion of risk and work
  towards practical application of the model. The
  textbook provides a list of betas for a selection
  of stocks.
• Choose a few firms from that list and discuss
  whether the betas are what you would expect. Be
  sure to explain why or why not.

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FIN 515 Week 5 problem Set

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•  Chapter 10 (pages 345348)
• 4.
• You bought a stock one year ago for 50 per share
  and sold it today for 55 per share. It paid a 1
  per share dividend today.
• a. What was your realized return?
• b. How much of the return came from dividend
  yield and how much came from capital gain
• 20.
• Consider two local banks. Bank A has 100 loans
  outstanding, each for 1 million, that it expects
  will be repaid today. Each loan has a 5
  probability of default, in which case the bank is
  not repaid anything. The chance of default is
  independent across all the loans. Bank B has only
  one loan of 100 million outstanding, which it
  also expects will be repaid today. It also has a
  5 probability of not being repaid. Explain the
  difference between the type of risk each bank
  faces. Which bank faces less risk? Why?
• 22.

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FIN 515 Week 5 Quiz

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• Question 1
• (TCO C) Company A has a beta of 2.77. Company B
  has a beta of .73. Company C has a beta of .90.
  The risk free rate is 6 and the market risk
  premium is 4. What is the expected return of
  investing in Company B? Show your wor
• Question 2.
• (TCO C) Your stock portfolio consists of only
  two stocks. You have 30,000 in Company A and
  35,000 in Company B. Company A has an actual
  return of -8 and Company B has a return of 12.
  What is the return on your portfolio? Show your
  work.
• Question 3.
• (TCO E) A company has a capital structure of 40
  debt and 60 equity. The YTM on the companys
  bonds is 9, and the companys effective tax rate
  is 40. The CFO has estimated the companys WACC
  to be 9.96. What is the companys cost of
  equity? Show your work.

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FIN 515 Week 6 Course Project 2 (2 Different
Projects)

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•  This Tutorial contains 2 Different Course
  Projects
• Second Project
• The purpose of this project is for you to have
  some practice working with financial concepts in
  the real world. This will involve integrating
  some material from throughout the course. The
  project will also involve the development of your
  own approach to doing the work. The project does
  not provide a step-by-step procedure for you to
  follow.
• Your task is to determine the WACC for a given
  firm using what you know about WACC as well as
  data you can find through research. Your
  deliverable is to be a brief report in which you
  state your determination of WACC, describe and
  justify how you determined the number, and
  provide relevant information as to the sources of
  your data.
• Assumptions
• As you recall, the formula for WACC is
• rWACC (E/ED) rE D/(ED) rD (1-TC)
• The formula for the required return on a given
  equity investment is

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FIN 515 Week 6 DQ 1 Examples of Real Agency
Problems and How They Could Have Been Prevented

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•  Examples of Real Agency Problems and How They
  Could Have Been Prevented (graded)
• Do some research and find some historical or
  current real life examples of agency problems.
• Will the measures discussed in the text help to
  prevent problems like your examples in the
  future? What else would you advise?
• You may provide examples of agency problems from
  your own experience. If you do that, be careful
  to provide enough anonymity that you won't get in
  trouble

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FIN 515 Week 6 DQ 2 The Role of Financial
Managers in Ethical Corporate Governance

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•  The Role of Financial Managers in Ethical
  Corporate Governance (graded)
• Does the financial manager have a greater
  responsibility or a lesser responsibility for
  maintaining ethical corporate governance?
• Why or why not? What is or will be your approach
  to ethical corporate governance now or in the
  future?

33
FIN 515 Week 6 Problem Set

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•  Chapter 29 (pages 983-984)
• 1.What inherent characteristic of corporations
  creates the need for a system of checks on
  manager behavior?
• 2. What are some examples of agency problems?
• 3.What are the advantages and disadvantages of
  the corporate organizational structure?
• 4.What is the role of the board of directors in
  corporate governance?
• 1.What inherent characteristic of corporations
  creates the need for a system of checks on
  manager behavior?
• 2.What are some examples of agency problems?
• 3.What are the advantages and disadvantages of
  the corporate organizational structure?
• Managing Agency Conflict

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FIN 515 Week 7 DQ 1 Industry Approaches to
Working Capital Financing

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• Industry Approaches to Working Capital Financing
  (graded)
• Do some research on two firms in your industry or
  an industry in which you are interested.
• Can you get an idea of their working capital
  management policies from publicly available
  information?
• How do the two companies differ in their apparent
  working capital management policies? Which policy
  do you think is better and why?

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FIN 515 Week 7 DQ 2 Your Preference for
Working Capital Management Policy

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•  
• FYour Preference for Working Capital Management
  Policy (graded)
• Consider the company you work for or a company in
  which you are interested. Also, do some research
  to find some current cost
• estimates for various means of financing working
  capital. What would be your recommendation to the
  company for financing its
• working capital needs? If the information is
  publicly available, or if you have access to it
  AND have permission to discuss it,
• how does your recommendation compare what the
  firm is actually doing?

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FIN 515 Week 7 Problem Set

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•  Chapter 26 (page 903)
• 1. Answer the following questions
• a. What is the difference between a firms cash
  cycle and its operating cycle?
• 2. How will a firms cash cycle be affected if a
  firm increases its inventory, all else being
  equal?
• 2. How will a firms cash cycle be affected if a
  firm begins to take the discounts offered by its
  suppliers, all else being equal?
• 4.The Greek Connection had sales of 32 million
  in 2012, and a cost of goods sold of 20 million.
  A simplified balance sheet for the firm appears
  below
• a- Calculate The Greek Connections net working
  capital in 2012.
• 2. Calculate the cash conversion cycle of The
  Greek Connection in 2012.

37
FIN 515 Read, Lead, Succeed/uophelpdotcom

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• www.uophelp.com